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Exit Strategy Checklist

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508 checklist240x

northington partners

This article is supplied to GrownUps by Northington Partners

What do you need to address in an exit strategy?

Lifestyle

  • Work life harmony and balance
  • Life after sale of business
  • Amount of Capital / income required on exit

Timing of Sale

  • Target date
  • Preparation of business for sale
  • Economic and industry conditions
  • Sale process

Maximise Value of Business

  • Capacity to grow value
  • Product(s) life cycle
  • Value now / five years
  • Optimal business performance

Identifiable Intangibles

  • Commercialise goodwill
  • Cohesive management team
  • Legal protection (eg: patents)
  • Removal of dependencies (customers / suppliers)
  • Documented processes

Most Likely Buyers

  • External
  • Internal (Other shareholders / Management)
  • Sound shareholders' agreement
  • What do they value

Consideration

  • Cash or deferred compensation
  • Ability to pay cash
  • Tax structuring of transaction (assets vs shares)
  • Ongoing consultation role to business

Print Checklist

Roy Austin – Northington Partners – Level 13, 52 Swanson Street, Auckland, New Zealand